Property tax, which accounts for nearly one-fourth of Municipal Corporation of Delhi’s internal revenue, saw a decline in collection following reports of exemptions and rebates announced on February 25. According to official data, the Municipal Corporation of Delhi (MCD) collected `2,132.89 crore in property tax during FY 2024-25, down from `2,163.57 crore collected in the previous fiscal. Recently, there have been reports regarding 100 per cent exemption of properties below 100 sq. yards and 50 per cent rebate for properties between 100-500 sq yards on the basis of Resolution/Announcement on February 25, 2025.
“The collection of Property Tax in 2024-25 is `2132.89 crore as compared to `2163.57 crore in the previous year. However, the collection of tax from the date when media reports were made till the close of FY was `193.28 crore as compared to collection of tax to the tune of `367.16 crore during the corresponding period of previous year. This shows that the drop in tax occurred due to misgivings generated due to the said announcement,” the MCD said in a statement. The MCD further clarified that as of February 24. 2025 ,prior to announcement /resolution made in the House ,tax collection figures are ` 1932.51 crore as compared to `1773.81 crore in the corresponding period of the previous year. This reflects an increase of `158.7 crore(1932.51–1773.81) with 8.95 per cent increase on date-to-date basis .This upward trend in tax collection indicates that in absence of news of exemption/Amnesty,the momentum would have continued further.
“These announcements led to widespread confusion among taxpayers, especially during the fag end of FY 2024–25.
Numerous queries were received from taxpayers whether their properties were eligible for exemption or not. Although the MCD issued clarifications through various newspapers, the communication did not adequately reach or reassure the public. As a result, the MCD experienced a notable drop in both the number of taxpayers and overall tax collection. It is essential to have good financial health of Corporation without which the service delivery in terms of sanitation, maintenance of streets/roads, storm water drainage and streetlights etc. are going to get impacted. It is essential that general public pays property tax and other taxes for ensuring delivery of basic civic services,” read the statement.
